Effect of Structural Liquidity on Profitability of Polish Commercial Banks in 2009–2016

Agnieszka Wojcik-Mazur ()
Additional contact information
Agnieszka Wojcik-Mazur: Czestochowa University of Technology, Faculty of Management, Institute of Finance, Banking and Accounting

Problemy Zarzadzania, 2017, vol. 15, issue 66, 53-63

Abstract: This study estimated determinants of Polish banks’ profitability in the context of their liquidity policy. Return on equity (ROE) served as an independent variable in the model, whereas balance sheet measures were used as liquidity risk predictors. The surveys conducted based on four biggest commercial banks demonstrated relationships between liquidity risk and rates of return of banks. It should be emphasized that in the Polish economic landscape the growing share of both liquid assets and loans has a positive effect on ROE. Only a higher ratio of very highly liquid assets, identified with cash in the central bank, to the balance sheet total is a factor to limit ROE. Consequently, due to the specific conditions, Polish banks do not have to be interested in maintaining an increasing growth rate of lending activity since financial investments do not substantially inhibit their profitability (measured with ROE).

Keywords: liquidity risk; bank; profitability; determinants institutions; deposit guarantee schemes (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://press.wz.uw.edu.pl/ems/vol15/iss66/3 (application/pdf)
http://pz.wz.uw.edu.pl/en (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sgm:pzwzuw:v:15:i:66:y:2017:p:53-63

Access Statistics for this article

More articles in Problemy Zarzadzania from University of Warsaw, Faculty of Management Contact information at EDIRC.
Bibliographic data for series maintained by ().